Rep. Elmer: Bad housing bill (SB 426-A) would be first in nation bad

Majority Party Passes Bill Making Oregon the First State in The Nation to Hold Owners Liable for Wages They Already Paid
By Oregon State Representative Lucetta Elmer,

House Republicans Offer Real Solutions to Help Workers Experiencing Wage Theft

Salem, Ore. – Today, House Democrats on the House Committee on Labor & Workplace Standards Committee passed Senate Bill 426A, holding owners and upper tier contractors liable for unpaid wages of subcontractor’s employees, with some limited exceptions.

If passed, this legislation would make Oregon the first state in the nation to hold owners liable for wages they already paid.

“I firmly believe this legislation will result in devastating lawsuits against Oregon businesses and property owners who did nothing wrong. There are better ways to target these bad actors, as I believe our amendments showed today. We will continue advocating for policy that gets to the heart of this issue,” said Representative Elmer (R-McMinnville).

During the committee, the Majority Party touted the excellent process to improve the legislation. However, it was discovered during the House committee hearing that the bill was passed out of the Senate under the false impression that primary homeowners were exempt from potential liability.

After receiving over 1,300 emails in opposition to this bill, and with several outstanding concerns remaining on Senate Bill 426A, House Republicans proposed five commonsense amendments to help workers experiencing wage theft or human trafficking:

• -A18 Amendment: During the public hearing, the Oregon Bureau of Labor & Industries verified on the record that there are two licensed Construction Labor Brokers licensed in the State of Oregon. There are hundreds in other sectors. This amendment would have changed the focus of the bill to go after the bad actors, rather than holding owners & direct contractors liable for wages they already paid.
• -A19 Amendment: According to the Oregon Department of Justice, there is one full-time state position in the State of Oregon dedicated to Human Trafficking Response & Intervention. This amendment would have directed the Oregon DOJ, via a pre-existing advisory committee, to look at the prevalence of human trafficking in Oregon and the extent to which unpaid wages may be connected to human trafficking.
• -A20 Amendment: Binding Arbitration is a private legal procedure many unions utilize rather than having to go through a court system. This amendment would have given nonunion contractors the opportunity to use binding arbitration, like unions can, for resolving wage claims. This would have ensured workers could be paid quickly and would have avoided a complicated legal process.
• -A23 Amendment: In its current form, Senate Bill 426A would invalidate many business-to-business contracts. This amendment would have ensured that employees cannot be required to waive liability for a contractor or owner.
• -A24 Amendment: Under the base legislation, it remains unclear about who or is not exempt from liability. This amendment would have exempted all owners from liability and clarified that a worker must approach a “third party representative” on their terms, such as union or non-profit. Under this legislation as drafted, unions or non-profits could show up on jobsites and solicit such representation.

All five House Republican amendments were voted down along party lines.

Ultimately, the Majority Party adopted the -A22 Amendment, doing little to fix the issues in Senate Bill 426A. Despite attempted clarifying questions to Legislative Counsel by House Republicans, it is unclear who will or will not be held liable under this legislation.

House Republicans made a motion to send Senate Bill 426A to the House Committee on Rules for additional discussion, but this also was rejected along party lines.

The contentious Senate Bill 426A now moves to the House floor for a vote. House Republicans have served notice of a Minority Report.